Submitted By: J.
Answered: January 27, 2017 9:00 am

A residence that had been held in a grantor trust was sold following the death of the grantor. The sale price was less than what the grantor paid for the home years ago. Is there a taxable loss?

When a taxpayer dies, the tax basis of the property is the value of the property on the date of death. As such, if property is sold for this date-of-death value, there is no gain or loss.

advertisement
Tax Glossary

Refundable tax credit

A credit that entitles you to a refund even if you owe no tax for the year.

More terms